RBI Update - Review of Qualifying Assets Criteria (Applicable- All Non-Banking Financial Companies - Microfinance Institutions)

The RBI has revised the qualifying asset criteria for NBFC-MFIs under paragraph 8.1 of the Master Direction on Microfinance Loans. Now, qualifying assets—aligned with the definition of microfinance loans -- must constitute at least 60% of total net assets (excluding intangible assets) on an ongoing basis. If this condition is not met for four consecutive quarters, the NBFC-MFI must submit a remediation plan to the RBI. The revised norms are effective immediately.

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